Record high FDI in 2017
FDI increased 16.2% y/y reaching record high US$ 1.9bn in 2017, according to GeoStat’s preliminary figures. The transport and communication sector was the largest FDI recipient at US$ 527.1mn (-22.2% y/y, 28.3% of total), followed by financial sector at US$ 304.3mn (+97.7% y/y, 16.3% of total) and construction at US$ 294.6mn (+114.0% y/y, 15.8% of total). Azerbaijan topped the list of investors with US$ 482.1mn (-13.6% y/y), followed by Turkey at US$ 279.0mn (+36.0% y/y), and United Kingdom at US$ 250.4mn (+109.3% y/y).

Exports up 25.0% y/y in February 2018
In February 2017, exports increased 25.0% y/y to US$ 223.7mn, imports were up 8.7% y/y to US$ 640.0mn and the trade deficit widened 1.5% y/y to US$ 416.3mn according to GeoStat’s preliminary figures. In 2M18, trade deficit was up 7.4% to US$ 790.7mn as exports increased 25.5% y/y to US$ 446.4mn, while imports were up 13.3% y/y to US$ 1.2bn. Detailed foreign trade statistics will be available on March 19, 2018.

Money transfers up 21.0% y/y in February 2018
In February 2018, money transfers increased 21.0% y/y to US$ 113.9mn after growing 31.1% y/y in previous month, according to NBG. Money transfers were up from almost all major remitting countries: Russia (+10.1% y/y, 29.3% of total), Italy (+42.1% y/y, 12.4% of total), Greece (+32.5% y/y, 11.7% of total), Israel (+56.1% y/y, 10.4% of total) and Turkey (+30.7% y/y, 8.7% of total). Meanwhile remittances were down from USA (-19.1% y/y, 7.2% of total). In 2M18 money transfers were up 25.8% y/y to US$ 223.9mn.

NBG keeps monetary policy rate unchanged at 7.25%
At its meeting on 14 March 2018, NBG’s monetary policy committee decided to keep its policy rate unchanged at 7.25%. According to NBG, inflation started decreasing since the beginning of 2018, reaching 2.7% in February as one-off factors affecting price growth in 2017 faded. NBG, however deemed appropriate to maintain the moderately tight monetary policy as inflation is still under pressure from the NEER, despite its recent appreciation. The gradual easing of the policy will be considered once the factors pushing inflation upwards are sufficiently weakened. According to the current NBG’s forecast, the inflation will remain close to its target level of 3% throughout 2018. The next committee meeting is scheduled for 2 May 2018.